Abu Dhabi-backed RedBird IMI faces further regulatory scrutiny of its £600mn planned takeover of the Telegraph Media Group following UK government concerns about a proposal to overhaul its corporate structure for the business.

RedBird IMI wants to create a holding company via a new English limited partnership to acquire the newspaper group, as part of a package of proposals designed to guarantee the independence of the editorial team of the right-leaning broadsheet.

Lucy Frazer, culture secretary, on Thursday asked Ofcom and the Competition and Markets Authority to consider whether the new holding company in effect represented a materially different deal, and so needed a new probe from both regulators.

RedBird IMI’s bid was already being scrutinised by Ofcom, which was due to present its recommendations to Frazer this week. She had asked the regulator to report on whether the deal could raise public interest concerns in relation to the need for accurate presentation of news and the need for free expression of opinion, given the risk of influence by Abu Dhabi over the newspaper.

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